What is "Failure Swing" and "Classic divergence"

sh50

Active Member
#1
Negative divergence is when the indicator goes down and the price is going up and Positive divergence vice-versa. Where does classic divergence come in.

I think Failure swing also has something to do with divergence. Even if not, what is it?
 
Last edited:
C

CreditViolet

Guest
#2
Classic divergence
Eg Stochastic-There are two types of crossovers-Right hand and left hand crossovers
A right hand cross over with more visible troughs and peaks can be classified as a classical divergence.

Failure swing has its origin in dow theory.It happens when the current peak or low is below the previous high or vice versa for a low.ie is u can see a deterioration in progress.The whole momentum concept is base on failure swings.
I will try to post some charts to clarify this later
 

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